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RIAJ Yearbook 2003

The Recording Industry in Japan English Edition 2003 Statistics Analysis Trends レコ協_YB03_E030612修正 03.6.20 4:34 PM ページc2 レコ協_YB03_E030612修正 03.6.20 4:34 PM ページc3

CONTENTS

1. Major Issues for the Recording Industry in 2003 ...... 1

2. Overview of Record Production in 2002 ...... 2

3. Statistics by Format ...... 3 Total Audio Recordings — Unit Basis ...... 3 5" CD Albums — Unit Basis ...... 3 CD Singles — Unit Basis...... 3 Total CDs — Unit Basis ...... 4 Analog Disks — Unit Basis ...... 4 Cassettes — Unit Basis ...... 4 Total Audio Recordings — Value Basis ...... 5 5" CD Albums — Value Basis ...... 5 CD Singles — Value Basis ...... 5 Total CDs — Value Basis ...... 6 Analog Disks — Value Basis ...... 6 Cassettes — Value Basis...... 6 Transition of Audio Recordings — Unit Basis ...... 7 Transition of Audio Recordings — Value Basis ...... 8 Audio Recordings (comparison of 2002 vs. 2001) ...... 9 Video Recordings ...... 10 CD Derivative Recordings (Audio/Visual) ...... 10 New Audio Releases — Unit Basis ...... 11 Transition of Audio Recordings of New Releases — Unit Basis...... 12 Audio Recordings on Catalogues — Unit Basis ...... 13 New Video Releases — Unit Basis ...... 14 Video Recordings on Catalogues — Unit Basis ...... 14 Number of Domestic Debut Artists...... 15 Number of Overseas Labels ...... 15 Transition of Production of Million Sellers — Unit Basis ...... 15 Number of Record Rental Shops ...... 16 Distribution System in Japan ...... 16 The Japan Gold Disc Award 2003 ( March 2003 )...... 17,18 4. Related Data Music Copyright Royalties in Japan ...... 19 Domestic Penetration of Playback Equipment by Type ...... 19 Price of Recordings Compared with Consumer Goods ...... 19 Projections for Global Demand in Recording Media ...... 20 Magnetic Tape Production...... 20 Global Sales of Recordings by Country ...... 21-24 Global Shipping and Sales of Audio Recordings by Leading Country ...... 25,26 Global Share in Sales of Audio Recordings ...... 26 Import / Export of Audio Disks ...... 27

RIAJ Yearbook 2003 レコ協_YB03_E030612修正 03.6.20 4:34 PM ページ1

1 Major Issues for the Recording Industry in 2003

While the Japanese recording industry has been media for enjoying music has brought new life into the entrenched in a prolonged harsh market environment music industry this year. for the term, various measures have been implemented In 2003, some positive signs are seen in the record- to stimulate the market. ing industry under the action plan for transforming One example is the countermeasures against the ille- Japan into a nation built on intellectual property and gal use of music on the Internet and illegal copy. Since various measures to promote culture and arts, taken by copy control CDs (CCCDs) have been introduced to the Japanese government. Moreover, the growing interest market in March 2002, the number of companies releas- in Japanese music in other Asian countries has ushered ing CCCDs has increased to make the technology as a in great opportunities for overseas expansion. widely recognized security option. However, promoting the future growth of music cul- Another example is the effort to accommodate the ture will require the record industry to solidify its existing new formats such as DVD video, DVD audio and SACD. base through multi-pronged measures in such areas as With DVD videos, in particular, its production volume legislation, technology, enforcement and education. has jumped 39% in line with the growing popularity of The measures to be pursued in achieving this aim are DVD players. In this way, the increasingly wider array of outlined below.

1. Measures for Legislation 1. Establishment of importation right (Right to control the backflow of Japanese repertory CDs and other products to Japan) 2. Establishment of broadcasting right (Right to grant a license to digital music broadcasting which aims at recording by receivers) 3. Extension of period of the neighboring right protection (Extension of a 50-year term to a 70-year term) 4. Revision of remuneration for audio home recording system (Converting to a system that conforms to existing music recording trends)

2. Support to Introduce Technological Protection Measures 1. Introduction of copy control technologies (Support to introduce technology into media that prevents sound record- ing from being copied in line with right holders’ intention) 2. Verification of content ID (Technologies that employ watermark for encoding identification numbers and electroni- cally detecting broadcasts of the media)

3. Countermeasures Against Illegal Activities 1. Countermeasures against illegal use of music on the Internet (1) Requests for infringement prevention at companies, schools and public institutions (2) Investigation and warning of Internet-based infringer and subsequent legal action 2. Countermeasures against illegal recordings Investigation and warning against illegal recording activities and subsequent legal action

4. Conducting Copyright Education and Promoting Knowledge and Awareness of Copyright 1. Conducting prevention campaigns, advertising and other activities against illegal duplication, illegal uploads and similar violations 2. Offering and supporting copyright education at educational entities to deepen understanding of copyright

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2 Overview of Record Production in 2002

For 2002 (January to December), the total production million units (139% vs. previous year) and a value of of audio and video recordings by the 24 member 90.4 billion yen (110% vs. previous year), video record- companies of the Recording Industry Association of ings achieved production volume of 67.5 million units Japan (RIAJ), including OEM production, was 409.8 (117% vs. previous year) valued at 135.9 billion yen million units (93% vs. previous year), with a value of (91% vs. previous year). 579.0 billion yen (89% vs. previous year). Among video recordings, comprised 13% of Production in audio recordings was 342.4 million the total production and 16% of the total value. units (89% vs. previous year), while value was 443.1 billion yen (88% vs. previous year). Nonetheless, CDs accounted for roughly 81% of pro- duction and 75% of total value, as in the previous year. As DVDs were brisk, with production volume of 53.8

●Production of Audio and Video Recordings in 2002

Units Share Change Value Share Change Item (thousands) (%) (%) (millions of yen) (%) (%) D. 7,801 2 84 3,808 1 99 3" CDs I. 167 0 32 53 0 116 T. 7,967 2 81 3,861 1 99 D. 73,371 18 75 55,604 10 74 Singles 5" CDs I. 1,421 0 110 1,073 0 98 T. 74,793 18 75 56,677 10 74 D. 81,172 20 75 59,412 10 75 Sub-Total I. 1,588 0 88 1,126 0 99 T. 82,760 20 76 60,538 10 75 D. 169,303 41 93 262,590 45 88 5" CD Albums I. 76,616 19 100 108,678 19 99 T. 245,919 60 95 371,268 64 91 Audio D. 250,475 61 86 322,002 56 85 CD Total I. 78,204 19 100 109,804 19 99 T. 328,679 80 89 431,806 75 88 D. 573 0 53 645 0 58 Analog Disks I. 124 0 59 137 0 58 T. 697 0 54 782 0 58 D. 12,921 3 86 10,495 2 87 Cassettes I. 52 0 85 46 0 88 T. 12,972 3 86 10,542 2 87 D. 263,968 64 86 333,142 58 85 Total I. 78,379 19 100 109,987 19 99 T. 342,348 84 89 443,129 77 88 DVDs 53,836 13 139 90,358 16 110 LDs 1,853 0 87 3,123 1 87 Video Tapes 11,782 3 70 42,388 7 67 Total 67,471 16 117 135,869 23 91 Grand Total 409,819 100 93 578,998 100 89

Reference

D. 120,571 100 89 14,250 100 88 CD Derivative Recordings (Audio/Visual) I. 000000 T. 120,571 100 89 14,250 100 88

N.B. 1. The current year’s results are a compilation of results from the 24 member companies of RIAJ. Above figures also include OEM sales by RIAJ members for non-RIAJ members. 2. Figures are rounded, hence the possible difference between breakdown and total.

Abbreviations D. Domestic Repertoire I. International Repertoire T. Total

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3 Statistics by Format

Total Audio Recordings — Unit Basis

Millions of units 444 472 481 480 433 418 410 466 400 385 381 386 361 361 342 337 351 353 300 317 307 264

200

114 111 100 94 100 94 Total 81 83 80 79 78 Domestic International 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

5" CD Albums — Unit Basis

Millions of units

303 300 289 275 283 276 276 259 228 242 246 211 200 191 195 198 175 183 166 169 151 153

109 107 100 98 92 Total 77 89 81 79 76 77 Domestic International 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

CD Singles — Unit Basis

Millions of units

166 168 165 154 150 154 166 147 138 163 138 151 160 153 145 134 136 60 109 100 (12cm) 104 (12cm) 108 83

98 81 (12cm) 86 73 50 (8cm) (12cm) Total 1 (12cm) 1 (12cm) 1 (8cm) 9 1 (8cm) (8cm) Domestic 33 1 8 2 1 (12cm) 1 (12cm) 3 4 (8cm) (8cm) International 0 4 3 1 1 2 0 (8cm) 2 0 (8cm) 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

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Total CDs — Unit Basis

Millions of units 457 457 440 449 424 414 400 382 380 369 358 364 341 329 326 338 334 302 300 287 290 250 200

114 111 100 93 100 93 Total 80 83 80 78 78 Domestic International 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Analog Disks — Unit Basis

Thousands of units

3,000 2,985

2,538 2,000 1,914

1,297 1,186 1,609 1,034 1,000 944 842 697 Total 620 534 1,087 592 805 838 Domestic 689 447 239 305 352 347 305 573 153 381 229 228 210 124 International 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Cassettes — Unit Basis

Millions of units

35

30 35 30

29 25 23 23 22 20 25 23 23 18 22 17 15 18 13 17 15 10 13 Total Domestic 1 000000000 International 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

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3 Statistics by Format

Total Audio Recordings — Value Basis

Billions of yen

588.0 607.5 600 574.0 583.9 569.6 539.8 519.2 503.1 500 513.7 470.9 443.1 445.2 447.0 424.7 409.1 425.8 400 394.3 380.4 391.8 333.1 300

200 164.9 158.1 142.9 136.6 Total 138.9 122.5 100 119.4 115.1 111.3 110.0 Domestic International 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

5" CD Albums — Value Basis

Billions of yen 450.6 458.2 492.4 426.4 400 403.9 463.2 450.4 409.3 382.8 371.3 357.0 321.7 330.0 300 302.8 312.7 288.4 299.4 267.0 268.1 262.6

200 162.2 155.4 135.7 141.5 135.4 115.8 120.3 113.7 108.7 Total 100 109.9 Domestic International 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

CD Singles — Value Basis

Billions of yen

104.4 100.6 103.9 100.9 100 97.7 95.5 97.4 88.4 102.6 103.0 96.1 98.6 99.4 80 94.9 96.5 80.3 86.5 45.7 (5") 81.6 79.2 60.5 60 (5")

75.3 59.4 40 (5") 55.6 53.7 (5") (3") Total 20 1.1 (5") 0.8 (5") 1.0 (5") 1.1 (5") 0.4 (3") 0.1 (3") 0.0 (3") 0.0 (3") Domestic 3.8 3.8 14.9 1.9 2.0 1.8 (3") (3") 1.1 International 0 1.6 0.9 0.6 1.5 (3") 0.9 1.1 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

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Total CDs — Value Basis

Billions of yen

587.9 523.9 492.2 567.1 500 480.5 551.2 562.6 551.3 489.6 451.9 431.8 424.7 429.4 405.3 409.3 400 387.0 378.6 363.1 354.6 300 322.0

200 164.1 157.2 142.4 136.0 137.7 121.8 Total 100 117.3 114.6 111.0 109.8 Domestic International 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Analog Disks — Value Basis

Billions of yen 3.6

3 3.0 2.1 2 1.5 1.5 1.4 1.6 1.4 1.3 1.1 1.1 1 1.4 9 1.0 1.0 0.8 0.8 Total 0.7 0.6 0.5 0.5 0.4 0.6 Domestic 0.3 0.4 0.4 0.3 0.1 0.2 0.1 International 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Cassettes — Value Basis

Billions of yen

31.7 30 31.0 25.9 22.0 25.4 20.0 20 19.6 18.1 21.7 19.7 19.4 14.7 18.0 13.9 12.1 14.6 10.5 10 13.8 12.1 Total 10.5 Domestic 0.7 0.5 0.3 0.3 International 0 0.2 0.2 0.1 0.1 0.1 0.0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

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3 Statistics by Format

Transition of Audio Recordings — Unit Basis

Disks SPs 1930 14,400 Millions of units 1931 16,895 1932 17,016 400 1933 24,675 1934 25,731 1935 28,927 300 1936 29,638 1937 26,409 200 1938 19,634 SPs CDs (5") 1939 24,385 7" Cartridges 100 1940 20,928 10"/12" Cassettes 1941 19,714 7"+10"/12" Open Reels 1942 17,085 CDs (3") Total 0 ’43-’45 1930 1940 1950 1960 1970 1980 1990 2002 1946 6,420 1947 8,847 1948 11,962 1949 16,860 Thousands of units 1950 11,828 Disks Tapes 1951 14,904 7" 10"/12" CDs Cartridges Cassettes Open Reels Total 1952 17,806 33rpm 45rpm 33rpm 45rpm 3" 5" 1953 19,357 52 19,409 1954 15,896 455 209 16,560 1955 12,781 1,172 547 14,500 1956 11,540 2,379 1,019 14,938 1957 9,877 3,889 1,821 15,587 1958 8,520 5,417 3,264 17,201 1959 5,536 8,726 5,127 19,389 1960 3,078 73 13,530 7,323 24,004 1961 1,976 765 19,428 10,653 32,822 1962 584 2,765 26,927 13,462 43,738 1963 25 6,606 39,234 13,730 59,595 1964 9,012 50,954 13,847 73,813 1965 14,693 61,887 14,354 90,934 1966 15,285 63,063 16,142 94,490 1967 15,686 65,338 18,863 213 100,100 1968 16,968 75,489 27,757 217 5,529 631 171 126,762 1969 16,712 78,473 38,332 55 12,394 1,250 206 147,422 1970 11,749 71,704 50,095 7 18,338 3,790 192 155,875 1971 10,453 81,414 58,443 1 14,844 5,837 279 171,271 1972 8,004 82,909 61,137 0 13,535 6,770 239 172,594 1973 6,997 86,744 78,520 0 15,606 10,591 242 198,700 1974 6,735 91,166 83,758 0 12,790 11,154 111 205,714 1975 6,307 86,399 84,665 0 12,160 14,090 44 203,665 1976 5,548 99,543 94,599 62 11,388 20,187 14 231,341 1977 5,896 85,759 92,189 219 9,055 25,612 15 218,745 1978 4,801 98,283 93,012 132 11,699 34,855 6 242,788 1979 4,036 106,302 88,346 120 15,087 46,220 2 260,113 1980 5,188 99,172 90,504 79 22,858 57,107 0 274,908 1981 2,756 84,929 80,383 466 26,152 60,627 255,313 1982 2,451 76,285 73,022 158 36,489 61,115 249,520 1983 2,569 76,649 69,049 469 33,113 64,618 246,467 1984 1,149 69,979 66,708 1,503 6,365 21,973 60,917 228,595 1985 1,180 60,959 58,057 4,320 20,638 13,826 60,694 219,673 1986 1,415 59,152 42,751 2,732 45,120 8,355 62,517 222,041 1987 818 45,432 25,996 1,749 64,992 5,893 68,925 213,804 1988 564 26,855 10,935 1,109 25,557 89,980 3,415 76,074 234,490 1989 910 6,770 2,182 194 47,094 143,424 1,666 72,301 274,542 1990 224 1,382 703 23 61,820 169,129 672 56,541 290,494 1991 9 87 885 1 88,776 210,497 254 44,579 345,087 1992 14 17 982 1 110,559 222,671 47 38,853 373,142 1993 0 76 766 0 153,795 227,756 4 35,333 417,730 1994 620 138,271 241,699 0 29,860 410,450 1995 534 164,581 275,369 25,031 465,515 1996 944 166,294 282,556 22,512 472,305 1997 1,034 167,827 289,313 22,534 480,706 1998 1,186 154,260 302,913 21,818 480,177 Singles Albums 1999 2,985 86,333 61,145 276,279 17,608 444,351 2000 1,914 33,124 104,601 276,327 17,174 433,140 2001 1,297 9,788 99,605 259,233 15,160 385,083 2002 697 7,967 74,793 245,919 12,972 342,348

N.B. 1. Figures are rounded, hence the possible difference between total and breakdown. 2. Distinction between 7" and 10"/12" analog recordings eliminated in 1994.

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Transition of Audio Recordings — Value Basis

Millions of yen

600,000

500,000

400,000

300,000 SPs CDs (5") 7" Cartridges 200,000 10"/12" Cassettes 100,000 7"+10"/12" Open Reels CDs (3") Total 0 1952 1960 1970 1980 1990 2002

Millions of yen Disks Tapes 7" 10"/12" CDs SPs Cartridges Cassettes Open Reels Total 33rpm 45rpm 33rpm 45rpm 3" 5" 1952 2,269 1953 3,016 1954 3,186 1955 3,018 1956 2,084 792 1,181 4,058 1957 1,774 1,191 2,007 4,972 1958 1,496 1,365 2,859 5,719 1959 962 1,870 4,089 6,921 1960 516 21 2,749 5,685 8,971 1961 334 206 3,789 8,233 12,562 1962 104 699 5,275 11,180 17,259 1963 4 1,760 7,722 11,433 20,919 1964 2,369 9,855 12,966 25,190 1965 4,140 12,557 12,696 29,393 1966 4,381 13,306 14,278 31,965 1967 3,983 14,009 16,413 242 34,646 1968 4,988 19,155 24,821 281 49,245 1969 5,114 20,830 34,352 73 60,369 1970 3,765 19,578 42,368 9 65,720 1971 3,249 22,498 50,829 1 30,434 4,879 352 112,242 1972 2,757 25,050 55,474 0 26,662 5,628 303 115,876 1973 2,535 29,706 75,310 0 33,475 10,007 280 151,314 1974 2,649 31,771 98,005 0 28,816 14,542 177 175,960 1975 2,533 30,159 104,442 0 26,674 20,997 78 184,883 1976 2,295 37,604 123,627 36 21,383 33,402 35 218,381 1977 2,495 34,745 126,030 269 14,334 44,723 42 222,638 1978 1,908 40,172 129,980 148 12,107 61,371 18 245,704 1979 1,659 43,753 125,884 103 14,191 76,993 6 262,589 1980 2,300 42,673 136,187 78 21,265 90,341 292,844 1981 1,191 39,766 130,652 798 24,529 91,718 288,654 1982 1,053 35,920 118,148 171 35,152 90,594 281,037 1983 1,366 36,724 114,092 500 32,290 96,691 281,663 1984 533 33,720 110,948 1,369 14,439 21,696 91,406 274,111 1985 1,150 29,425 95,910 3,761 47,931 13,708 89,453 281,337 1986 733 28,323 71,624 2,625 97,912 8,482 89,220 298,920 1987 448 21,956 45,967 1,562 139,016 6,340 96,295 311,584 1988 328 12,925 18,842 1,111 18,825 186,423 3,680 100,812 342,947 1989 400 3,107 3,349 286 29,756 257,005 1,678 87,752 383,332 1990 140 640 1,034 41 37,556 285,793 693 61,872 387,770 1991 5 38 1,441 0 53,967 345,829 259 47,714 449,252 1992 10 8 1,834 1 69,064 369,467 45 37,819 478,247 1993 0 43 1,479 0 97,710 382,754 4 31,689 513,679 1994 1,081 88,371 403,870 25,924 519,246 1995 881 100,565 450,604 21,982 574,031 1996 1,312 104,418 458,164 19,969 583,862 1997 1,369 103,891 463,187 19,573 588,019 1998 1,484 95,478 492,400 18,132 607,494 Singles Albums 1999 3,575 54,077 46,850 450,369 14,680 569,551 2000 2,069 15,046 82,393 426,440 13,868 539,816 2001 1,351 3,885 76,432 409,261 12,132 503,061 2002 782 3,861 56,677 371,268 10,542 443,129

N.B. 1. Figures are rounded, hence the possible difference between total and breakdown. 2. Values for 1969-1988 reflect manufacturer’s price including tax; value from 1989 is manufacturer’s price exclusive of consumption tax. 3. Distinction between 7" and 10"/12" analog recordings eliminated in 1994.

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3 Statistics by Format

Audio Recordings (comparison of 2002 vs 2001)

Units (thousands) Value (millions of yen) Item 2002 Share (%) 2001 Share (%) 02/01 (%) 2002 Share (%) 2001 Share (%) 02/01 (%)

D. 7,801 2.3 9,267 2.4 84 3,808 0.9 3,840 0.8 99 3" CDs I. 167 0.0 521 0.1 32 53 0.0 45 0.0 116 T. 7,967 2.3 9,788 2.5 81 3,861 0.9 3,885 0.8 99

D. 73,371 21.4 98,315 25.5 75 55,604 12.5 75,339 15.0 74 5" CD Singles I. 1,421 0.4 1,290 0.3 110 1,073 0.2 1,093 0.2 98 T. 74,793 21.8 99,605 25.9 75 56,677 12.8 76,432 15.2 74

D. 81,172 23.7 107,582 27.9 75 59,412 13.4 79,179 15.7 75 Single Sub-total I. 1,588 0.5 1,811 0.5 88 1,126 0.3 1,138 0.2 99 T. 82,760 24.2 109,393 28.4 76 60,538 13.7 80,317 16.0 75

D. 169,303 49.5 182,777 47.5 93 262,590 59.3 299,381 59.5 88 Audio Disks 5" CD Albums I. 76,616 22.4 76,455 19.9 100 108,678 24.5 109,880 21.8 99 T. 245,919 71.8 259,233 67.3 95 371,268 83.8 409,261 81.4 91

D. 250,475 73.2 290,359 75.4 86 322,002 72.7 378,560 75.3 85 CD Total I. 78,204 22.8 78,267 20.3 100 109,804 24.8 111,018 22.1 99 T. 328,679 96.0 368,626 95.7 89 431,806 97.4 489,578 97.3 88

D. 573 0.2 1,087 0.3 53 645 0.1 1,113 0.2 58 Analog Disks I. 124 0.0 210 0.1 59 137 0.0 238 0.0 58 T. 697 0.2 1,297 0.3 54 782 0.2 1,351 0.3 58

D. 251,048 73.3 291,447 75.7 86 322,647 72.8 379,673 75.5 85 Total I. 78,328 22.9 78,477 20.4 100 109,941 24.8 111,256 22.1 99 T. 329,376 96.2 369,923 96.1 89 432,588 97.6 490,928 97.6 88

D. 8,693 2.5 9,305 2.4 93 6,508 1.5 6,831 1.4 95 Singles I. 4 0.0 3 0.0 125 2 0.0 2 0.0 134 T. 8,697 2.5 9,308 2.4 93 6,510 1.5 6,833 1.4 95

D. 4,228 1.2 5,795 1.5 73 3,988 0.9 5,249 1.0 76 Cassettes Albums I. 48 0.0 57 0.0 83 44 0.0 51 0.0 87 T. 4,275 1.2 5,852 1.5 73 4,032 0.9 5,300 1.1 76

D. 12,921 3.8 15,099 3.9 86 10,495 2.4 12,080 2.4 87 Total I. 52 0.0 60 0.0 85 46 0.0 52 0.0 88 T. 12,972 3.8 15,160 3.9 86 10,542 2.4 12,132 2.4 87

D. 263,968 77.1 306,546 79.6 86 333,142 75.2 391,753 77.9 85 Grand Total I. 78,379 22.9 78,537 20.4 100 109,987 24.8 111,308 22.1 99 T. 342,348 100.0 385,083 100.0 89 443,129 100.0 503,061 100.0 88

N.B. 1. Above figures include OEM production by RIAJ members for non-RIAJ members. 2. Figures are rounded, hence the possible difference between breakdown and total.

Abbreviations D. Domestic Repertoire I. International Repertoire T. Total

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Video Recordings

●Unit Basis ●Value Basis

Millions of units Billions of yen 67.5 1.9 149.5 (2.7) 3.6 60 137.6 (2.4) 57.7 135.9 6.3 3.1 2.1 (4.6) (2.3) (3.7) 120 120.3 50 47.2 109.4 3.2 11.2 82.5 (6.9) (10.3) 55.8 40 53.8 (40.6) (55.2) 90.4 (79.8) 15.6 (66.5) 38.8 35.9 34.7 80 (14.3) (67.3) 90.2 30 4.7 23.0 (75.0) (13.5) (48.7) 6.3 (18.2) 24.4 20 (68.0) 82.5 40 (75.5) 75.5 (54.9) 23.7 63.4 10 (68.2) 20.9 (42.4) (44.4) 16.8 11.5 (29.0) 11.8 30.1 42.4 (32.0) (17.5) (25.0) (31.2) 0 0

1998 1999 2000 2001 2002 1998 1999 2000 2001 2002

Video Disks Cartridges DVDs LDs/Other Video Disks Cartridges DVDs LDs/Other

N.B. 1. Figures are rounded, hence the possible difference between total and breakdown. 2. Figures in parentheses show share % of the format.

CD Derivative Recordings (Audio/Visual)

●Unit Basis ●Value Basis

Millions of units 176.0 Billions of yen

165.7 165.8 26.4 150 25 23.3 134.9

120 120.6 20 19.8

16.1 90 15 14.3

60 10

30 5

0 0

1998 1999 2000 2001 2002 1998 1999 2000 2001 2002

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3 Statistics by Format

New Audio Releases — Unit Basis

●New Audio Releases

Title 10,808 11,152 10,000

2,000 1,904 6,367 6,665

188 1,698 1,500 115

1,000

1,716 1,583 575 565 4,441 4,487 552 544 589 500 2 14 6 381 Domestic 253 573 559 203 552 544 25 14 575 381 International 0 228 189 20012002 2001 2002 2001 2002 2001 2002 2001 2002 2001 2002 3" CDs 5" CDs Singles 5" CDs Albums Vinyls Cassettes Singles Other Cassettes

●Breakdown by Genre and Format in 2002

5" CDs Cassettes Genre 3" CDs Vinyls Total Singles Albums Total Singles Other Enka 477 61 365 426 0 481 275 1,659 Pop Kayokyoku 40 518 741 1,259 68 35 12 1,414 New Music 15 844 2,087 2,931 116 2 8 3,072 Sub-total 532 1,423 3,193 4,616 184 518 295 6,145 Light Music 0 2 184 186 0 0 7 193 Traditional 9 9 77 86 0 24 49 168 DOMESTIC Children’s 0 6 111 117 0 2 12 131 Anime 17 123 616 739 0 0 17 773 Classical 0 3 110 113 0 0 0 113 Karaoke 00110001 Other 1 17 195 212 5 0 1 219 559 1,583 4,487 6,070 189 544 381 7,743 Domestic Total (98%) (92%) (101%) (99%) (83%) (99%) (66%) (96%) Rock/Disco 5 83 2,573 2,656 4 0 0 2,665 Jazz/Fusion 0 4 1,194 1,198 9 0 0 1,207 Pop Pop 0 25 592 617 0 0 0 617 Screen 0 0 233 233 1 0 0 234 INTER- Other 1 0 92 92 0 0 0 93 NATIONAL Sub-total 6 112 4,684 4,796 14 0 0 4,816 Classical 0 0 1,939 1,939 0 0 0 1,939 Other 0 3 42 45 0 0 0 45 6 115 6,665 6,780 14 0 0 6,800 International Total (300%) (61%) (105%) (103%) (56%) - - (103%) 565 1,698 11,152 12,850 203 544 381 14,543 Grand Total (98%) (89%) (103%) (101%) (80%) (99%) (65%) (99%)

N.B. Figures in parentheses: percentage compared with previous year

* The total number of new released recordings in 2002

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Transition of Audio Recordings of New Releases — Unit Basis

Title

20,000

15,000

10,000 SPs CDs (5") 7" Cassettes 5,000 10"/12" Cartridges 7"+10"/12" Open Reels CDs (3") Total 0 1957 1960 1970 1980 1990 2002

Disks Tapes Total SPs 7" 10"/12" 3" CDs 5" CDs Cassettes Cartridges Open Reels 1957 1,673 1,651 1,070 4,394 1958 1,451 1,789 1,493 4,733 1959 964 2,074 2,202 5,240 1960 414 2,433 2,769 5,616 1961 139 2,475 3,483 6,097 1962 15 3,425 5,187 8,627 1963 4,231 5,281 9,512 1964 5,053 4,379 9,432 1965 4,954 4,111 9,065 1966 5,414 4,030 9,444 1967 5,416 4,366 9,782 1968 5,382 4,704 10,086 1969 4,807 5,451 10,258 1970 5,159 7,346 12,505 1971 5,006 8,415 2,162 2,933 295 18,811 1972 4,378 8,884 1,834 2,353 211 17,660 1973 3,818 9,186 1,767 1,781 157 16,709 1974 3,286 9,210 2,437 1,821 106 16,860 1975 3,930 11,198 2,720 1,816 23 19,687 1976 4,042 11,452 3,614 1,746 15 20,869 1977 4,681 11,075 3,891 1,110 26 20,783 1978 4,021 11,185 4,607 915 15 20,743 1979 4,233 11,358 5,526 818 3 21,938 1980 4,049 8,851 6,393 1,270 1 20,564 1981 3,224 8,119 6,504 1,672 19,519 1982 3,224 7,965 7,674 2,667 21,530 1983 3,246 7,052 788 7,277 2,543 20,906 1984 2,761 6,503 2,097 7,047 2,133 20,541 1985 2,668 5,750 4,546 6,504 1,845 21,313 1986 2,535 4,593 6,719 6,768 1,310 21,925 1987 2,547 3,661 8,772 7,872 1,520 24,372 1988 2,066 2,299 2,468 9,053 7,671 1,164 24,721 1989 993 528 2,780 12,155 7,691 642 24,789 1990 155 198 2,549 14,203 5,655 276 23,036 1991 0 229 2,933 16,451 4,188 160 23,961 1992 4 350 2,502 15,135 3,049 24 21,064 1993 MDs 9 439 2,556 15,697 2,362 DCCs 21,063 1994 177 258 2,761 15,527 2,142 65 20,930 1995 159 245 2,592 15,722 2,015 64 20,797 Singles Albums 1996 117 183 2,540 371 16,385 1,702 2 21,300 1997 252 242 2,431 428 15,497 1,710 20,560 1998 119 248 2,659 599 15,208 1,746 20,579 1999 33 396 1,795 1,225 12,573 1,436 17,458 2000 17 338 929 1,760 11,333 1,388 15,765 2001 1 253 575 1,904 10,808 1,141 14,682 2002 203 565 1,698 11,152 925 14,543

RIAJ Yearbook 2003 12 レコ協_YB03_E030612修正 03.6.20 4:34 PM ページ13

3 Statistics by Format

Audio Recordings on Catalogues — Unit Basis

●Audio Recordings on Catalogues

Title 94,173 10,138 80,000 168 80,364 9,272 123

7,500 59,390 6,526 43,729 6,064 1,199 5,371 86 5,237 5,000 4,982 10 4,959 76 35 9,970 9,149 782 36,635 2,500 34,783 4,200 5,327 5,361 4,924 5,978 5,161 Domestic 1,152 945 612 217 International 0 540 728 20012002 2001 2002 2001 2002 2001 2002 2001 2002 2001 2002 3" CDs 5" CDs Singles 5" CDs Albums Vinyls Cassettes Singles Other Cassettes

●Breakdown by Genre and Format in 2002

5" CDs Cassettes Genre 3" CDs MDs Vinyls Total Singles Albums Total Singles Other Enka 3,542 119 2,932 3,051 3 19 3,925 2,322 12,862 Pop Kayokyoku 1,886 1,631 5,964 7,595 6 65 226 190 9,968 New Music 2,760 3,065 14,378 17,443 10 638 200 235 21,286 Sub-total 8,188 4,815 23,274 28,089 19 722 4,351 2,747 44,116 Light Music 20 22 1,583 1,605 0 2 36 144 1,807 Traditional 160 12 1,179 1,191 0 0 449 1,068 2,868 DOMESTIC Children’s 125 44 2,615 2,659 1 1 30 419 3,235 Anime 573 354 4,098 4,452 0 2 10 306 5,343 Classical 0 0 2,314 2,314 12 0 0 42 2,368 Karaoke 0 0 63 63 0 0 20 13 96 Other 83 80 1,509 1,589 0 1 28 422 2,123 9,149 5,327 36,635 41,962 32 728 4,924 5,161 61,956 Domestic Total (92%) (127%) (105%) (108%) (41%) (135%) (92%) (86%) (102%) Rock/Disco 48 962 17,021 17,983 1 66 0 20 18,118 Jazz/Fusion 2 23 7,696 7,719 0 126 0 7 7,854 Pop Pop 64 186 3,171 3,357 1 7 2 28 3,459 Screen 1 6 1,376 1,382 08061,397 INTER- Other 3 6 957 963 0 1 0 12 979 NATIONAL Sub-total 118 1,183 30,221 31,404 2 208 2 73 31,807 Classical 3 10 13,438 13,448 090313,463 Other 2 6 70 76 0 0 33 0 111 123 1,199 43,729 44,928 2 217 35 76 45,381 International Total (73%) (153%) (74%) (75%) (18%) (35%) (318%) (88%) (74%) 9,272 6,526 80,364 86,890 34 945 4,959 5,237 107,337 Grand Total (91%) (131%) (85%) (88%) (38%) (82%) (92%) (86%) (88%)

N.B. Figures in parentheses: percentage compared with previous year

* The number of audio recording catalogues at year end 2002

13 RIAJ Yearbook 2003 レコ協_YB03_E030612修正 03.6.20 4:34 PM ページ14

New Video Releases — Unit Basis

●Breakdown by Genre and Format in 2002

Title 4,841 Disks Genre Tapes Total DVDs LDs/Other 4,268 882 Domestic 462 2 221 685 4,000 MUSIC International 429 0 46 475 590 Karaoke 101 234 0 335 Domestic 664 0 276 940 3,000 MOVIE International 939 0 321 1,260 Anime 1,364 0 832 2,196 Other 882 0 504 1,386 2,363 2,483 4,841 236 2,200 7,277 2,967 2,200 Grand Total 2,000 (113%) (74%) (93%) (105%) 536 504 N.B. Figures in parentheses: percentage compared with previous year

1,000 1,334 1,429 1,195 992 319 236 11 3 Other 493 0 Movie 305 236 267

20012002 2001 2002 2001 2002 DVDs LDs/Other Tapes

Music Movie Other

* The total number of new released recordings in 2002

Video Recordings on Catalogues — Unit Basis

●Breakdown by Genre and Format in 2002 Title 23,174 Disks Genre Tapes Total DVDs LDs/Other Domestic 1,417 383 2,197 3,997 20,000 19,554 MUSIC International 823 564 1,099 2,486 7,200 Karaoke 1,783 5,276 47 7,106 Domestic 1,845 246 3,279 5,370 5,759 15,000 MOVIE International 2,205 337 2,793 5,335 13,664 Anime 3,118 497 4,380 7,995 Other 2,473 645 5,759 8,877 2,473 13,664 7,948 19,554 41,166 Grand Total 10,000 (158%) (84%) (84%) (100%) 9,406 8,654 12,103 596 7,948 N.B. Figures in parentheses: percentage compared with previous year 10,452 1,528 7,168 2,035 645 1,080 5,000 4,488

6,775 6,223 3,871 4,023 3,343 0 2,638

20012002 2001 2002 2001 2002 DVDs LDs/Other Tapes

Music Movie Other

* The number of audio recording catalogues at year end 2002

RIAJ Yearbook 2003 14 レコ協_YB03_E030612修正 03.6.20 4:34 PM ページ15

3 Statistics by Format

Number of Domestic Debut Artists Number of Overseas Labels

No. of Companies No. of Artists No. of Labels 1993 27 417 (including 4 second debuts) 1989 284 1994 27 412 (including 57 second debuts) 1990 338 1995 30 347 (including 48 second debuts) 1991 330 1996 29 320 (including 43 second debuts) 1992 325 1997 29 250 (including 31 second debuts) 1993 323 1998 26 202 (including 32 second debuts) 1994 333 1999 21 257 (including 46 second debuts) 1995 342 2000 24 155 (including 17 second debuts) 1996 390 2001 24 132 (including 9 second debuts) 1998 456 2002 24 199 (including 28 second debuts) 2001 387

N.B. Group is counted as one artist. Artists belonging to Member Companies of Recording N.B. No statistics available for the years 1997, 1999, 2000 and 2002 Industry Association of Japan

Transition of Production of Million Sellers — Unit Basis

Title 1M=15 2M=6 1M=15 3M=4 30 2M=9 4M=2 3M=2 5M=1 1M=14 1M=18 4M=1 2M=8 2M=6 25 1M=20 28 3M=1 3M=2 1M=17 2M=4 1M=22 1M=22 27 8M=1 2M=4 2M=1 2M=1 26 4M=2 24 1M=11 24 23 2M=5 23 23 20 1M=20 1M=17 3M=1 1M=16 1M=10 2M=1 4M=1 1M=15 2M=1 20 2M=3 2M=1 15 1M=11 18 18 1M=12 3M=2 2M=3 17 2M=2 1M=7 16 15 2M=5 1M=9 1M=8 14 14 2M=1 2M=2 1M=8 10 12 3M=1 1M=5 10 10 9 2M=1 1M=5 5 1M=5 1M=2 1M=1 2M=1 6 2M=2 5 5 1M=2 3 3 1M=1 0 0 2 1 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Albums Singles M Million

N.B. Survey periods from 1989 to 1998: January 21 to January 20 of the following year; 1999: January 21 to December 31 of the following year; after 2000: January 1 to December 31 of the following year

15 RIAJ Yearbook 2003 レコ協_YB03_E030612修正 03.6.20 4:34 PM ページ16

Number of Record Rental Shops

7,000 6,213 6,000 5,988 5,491 5,000 4,889 4,655 5,097 4,460 4,331 4,000 4,804 3,864 4,509 4,468 3,572 4,116 3,800 3,000 3,661 3,504 2,921 2,000 1,844 1,682 2,393 1,000 1,910 1,049 0 34 1980 1985 1990 1995 2000 Apr. Rental record case Out-of-court Basic agreement on 2003 appealed settlement Agreement w/record renters realized new holdout period reached (Oct. '81) (May. '84) (Jun. '85) (Nov. '90) Temporary law Revised copyright law enforced enforced (Jan. '85) (Jun. '84) N.B. The number of shops is based on figures at fiscal year’s end. (Figures for 2003 are current as of the end of April 2003)

Distribution System in Japan

Record companies

Distribution network

(Japan Distribution System; Nippon Record Center)

Mail order, door-to-door Selling agents for Wholesalers sales companies professional users

Record shops contracted Record shops contracted with companies with wholesalers

49% 44% 7%

Consumers (End users)

RIAJ Yearbook 2003 16 レコ協_YB03_E030612修正 03.6.20 4:34 PM ページ17

3 Statistics by Format

THE JAPAN GOLD DISC AWARD 2003(March 2003)

Artist of the Year Artist Released by DUTADA HIKARU TOSHIBA-EMI IAvril Lavigne BMG FUNHOUSE

New Artist of the Year Artist Released by D ACIDMAN TOSHIBA-EMI YeLLOW Generation DefSTAR RECORDS orange pekoe BMG FUNHOUSE KISHIDAN TOSHIBA-EMI Avril Lavigne HIROMI SHIBAYA PONY CANYON day after tomorrow avex Chitose Hajime Japan HITOTO YO Columbia Music Entertainment PE’Z TOSHIBA-EMI MINMI Victor Entertainment IAvril Lavigne BMG FUNHOUSE Vanessa Carlton UNIVERSAL MUSIC Holly Valance WANER MUSIC JAPAN

Song of the Year Title Artist Released by DHIKARI UTADA HIKARU TOSHIBA-EMI SAKURA DROPS UTADA HIKARU TOSHIBA-EMI COLORS UTADA HIKARU TOSHIBA-EMI TOKYO KUWATA KEISUKE Victor Entertainment Way of Difference GLAY UNLIMITED RECORDS WADATSUMI NO KI Chitose Hajime Epic Records Japan Free & Easy ayumi hamasaki avex ayumi hamasaki avex Voyage ayumi hamasaki avex OKINA FURUDOKEI Ken Hirai DefSTAR RECORDS I ANTHEM 2002 FIFA WORLD CUPTM OFFICIAL ANTHEM Vangelis Music Japan International

Song of the Year [Enka/ Kayokyoku] Title Artist Released by DKIYOSHI NO ZUNDOKOBUSHI KIYOSHI HIKAWA Columbia Music Entertainment HOSHIZORA NO AKIKO KIYOSHI HIKAWA Columbia Music Entertainment

Rock&Pop Album of the Year Title Artist Released by D DEEP RIVER UTADA HIKARU TOSHIBA-EMI Jiko Best Kazumasa Oda BMG FUNHOUSE FAIRY TALE MAI KURAKI GIZA ROCK AND ROLL HERO KUWATA KEISUKE Victor Entertainment TOP OF THE POPS KUWATA KEISUKE Victor Entertainment Second to None CHEMISTRY DefSTAR RECORDS Do The Best Do As Infinity avex TRUE MIKA NAKASHIMA Associated Records HAINUMIKAZE Chitose Hajime Epic Records Japan RINBOW ayumi hamasaki avex GREEN B’z VERMILLION RECORDS The Ballads ~ Love & B’z ~ B’z VERMILLION RECORDS SELF PORTRAIT hitomi avex LIFE is... Ken Hirai DefSTAR RECORDS LISTEN TO MY HEART BoA avex VALENTI BoA avex MISIA GREATEST HITS MISIA BMG FUNHOUSE KISS IN THE SKY MISIA avex IT’S A WONDERFUL WORLD Mr.Children TOY’S FACTORY TOKYO CLASSIC RIP SLYME WANER MUSIC JAPAN I Let go Avril Lavigne BMG FUNHOUSE O, YEAH! - ULTIMATE AEROSMITH HITS AEROSMITH Sony Music Japan International THE EMINEM SHOW EMINEM UNIVERSAL MUSIC CHARMBRACELET MARIAH CAREY UNIVERSAL MUSIC BY THE WAY RED HOT CHILI PEPPERS WANER MUSIC JAPAN

17 RIAJ Yearbook 2003 レコ協_YB03_E030612修正 03.6.20 4:34 PM ページ18

Classic Album of the Year Title Artist Released by I Beethoven : Symphony No.9 《 Choral 》 Seiji Ozawa / Saito Kinen Orchestra UNIVERSAL MUSIC

Jazz Album of the Year Title Artist Released by ICOME AWAY WITH ME NORAH JONES TOSHIBA-EMI

Instrumental Album of the Year Title Artist Released by I MUSIC FROM THE MOTION PICTURE JOHN WILLIAMS WANER MUSIC JAPAN “HARRY POTTER AND THE CHAMBER OF THE SECRETS”

Enka/Kayokyoku Album of the Year Title Artist Released by DTIDA ~The sun,feels the wind ~ RIMI NATUKAWA Victor Entertainment

Animated Album of the Year Title Artist Released by D Sakura Wars 4 ~Maidens, Be in Love.~ Sakura Wars The Voice Talents of Imperial Operetta avex Music Album “GEKI! TEI ~The Final Chapter~” Company, Flower Team, and Group Flower of Paris

Traditional Japanese Music Album of the Year Title Artist Released by DI am with you TOGI HIDEKI TOSHIBA-EMI

Special Product Album of the Year Title Artist Released by D BAKUSHOW! SUPER LIVE Vol.1 Ayanokoji Kimimaro TEICHIKU ENTERTAINMENT

Special Product Album of the Year [compilation] Title Artist Released by Dkiss ~dramatic love story~ VARIOUS ARTISTS BMG FUNHOUSE IFINE - TV HITS and happy music - VARIOUS ARTISTS BMG FUNHOUSE

Music Video of the Year Short-Form Title Artist Released by D DVD Single “traveling” UTADA HIKARU TOSHIBA-EMI I I’m Not A Girl, Not Yet a Woman Britney Spears Zomba Records Japan

Music Video of the Year Long-Form Title Artist Released by Da BEAUTIFUL REEL. B’z B-VISION ILive From Las Vegas Britney Spears Zomba Records Japan

The Memorial Award for Commemorating the 30th Anniversary of Normalization of Japan-China Diplomatic Relations Title Released by Wu Ru-Jun avex JIANG JIAN HUA Victor Entertainment Chen Min TOSHIBA-EMI YOSHIDA KYODAI Sony Music Record

N.B. The above data covers the period from February 1, 2002 to January 31, 2003.

RIAJ Yearbook 2003 18 レコ協_YB03_E030612修正 03.6.20 4:34 PM ページ19

4 Related Data

Music Copyright Royalties in Japan ●Royalties Collected by JASRAC for Fiscal 2002 ●Trend of Annual Collection by JASRAC

Billions of yen Billions of yen 106.3 105.3 106.1 100 98.5 99.0 Other Audio Disks 16.8 (15.8%) 30.9 (29.1%) 80 55.7 58.2 Print Publications 48.7 50.7 62.8 1.7 (1.6%) 60

Online Karaoke Total 5.6 (5.3%) 40 7.7 49.8 7.5 48.3 9.4 50.6 47.1 106.1 10.3 43.3 Videos (100.0%) 10.1 10.1 (9.6%) Cassettes 20 2.3 (2.1%) 41.2 42.1 40.8 36.9 33.1 Broadcasting Performance 0 18.0 (16.9%) 20.7 (19.5%) FY1998 FY1999 FY2000 FY2001 FY2002 N.B. 1. Figures in parentheses: share % 2. Figures are rounded, hence the possible difference between total and breakdown. 3. Source: Japanese Society for Rights of Authors, Composers & Publishers. Mechanicals for Tapes & Disks Mechanicals for Videos Other Mechanicals for A + V Total N.B. The fiscal year begins on April 1 and ends on March 31 of the following year.

Domestic Penetration of Playback Equipment by Type

%

86.0 85.5 80 82.0 75.7 76.8 77.8 VCRs 75.1 72.5 73.7 73.8 81.4 69.0 78.4 79.3 79.6 Stereos 63.8 77.0 61.8 62.1 63.3 60 61.3 60.1 60.1 60.5 CD Players 57.7 58.2 57.9 59.9 61.0 55.5 52.9 57.2 60.3 56.8 56.3 Receivers for Satellite Broadcast 54.3 53.8 55.9 55.2 54.6 50.1 54.9 55.2 43.0 40 47.5 39.0 Mobile Phones 36.6 38.9 39.2 32.6 34.7 30.1 38.6 34.0 39.0 27.6 29.5 Personal Computers 26.6 25.2 27.0 39.0 20 21.3 22.1 Portable MD Players 16.2 17.3 17.0 13.9 15.6 15.0 24.0 11.9 11.0 20.0 PS2s 7.5 12.2 2.5 5.0 4.0 13.0 DVD Players 0 2.0 2.0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

N.B. 1. Source: Penetration figures for “VCRs,” “Stereos,” “CD Players,” “Receivers for Satellite Broadcast” and “Personal Computers” are based on “Consumer Attitudes” from the Economic and Social Research Institute (surveyed every March, covering 5,040 households in 231 municipalities). 2. Owning rations for “Portable MD Players,” “Mobile Phones,” “DVD Players” and “PS2s” are based on the “Annual Consumer Survey on Packaged Music Software, 2002,” conducted by RIAJ (conducted with 800 randomly sampled male and female respondents, age 13 to 65 (figures for 1995/97) and from 12 to 55 (figures for 1998/2002). 1,000 samples were taken in 2002.

Price for Recordings Compared with Consumer Goods

%

120

110 CD Cigarettes Movie Admission 100 Weekly Magazine Newspaper Consumer Price Index 90 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

N.B. 1. Source: “Annual Report on the Consumer Index” published by the government’s Statistics Bureau, Management & Coordination Agency 2. Prices of CDs: price of standard Local Pop CD Album

19 RIAJ Yearbook 2003 レコ協_YB03_E030612修正 03.6.20 4:34 PM ページ20

Projections for Global Demand in Recording Media ●Recordable MDs ●DVDs Millions of units Millions of units

229 219 192 200 209 160 164 160 136 150 152 120

100 80 69 56 46 50 40 45 39 34 23 10 10 1112 13 0 9 0 North Recordable Rewritable World Total Japan America Europe Other World Total 2001 2002 2003 Projection 2002 2003 Projection

●Audio CD-Rs ●Data CD-Rs Millions of units Millions of units 295 7,030 250 246 6,000 6,120 200 185 5,013 150 4,000 139 119 2,885 109 2,610 100 2,565 91 88 2,270 2,000 2,120 64 1,876 50 1,025 865 23 28 687 18 16 19 395 510 0 12 0 330 North North Japan America Europe Other World Total Japan America Europe Other World Total 2001 2002 2003 Projection 2001 2002 2003 Projection

●CD-RW (Including audio CD-RWs) Millions of units 477 Magnetic Tape Production 400

359 Audio Tape 300 Volume Volume in Units Value (thousands sq.m) (millions of units) (billions of yen) 236 1994 481,492 1,404 73.0 200 189 191 1995 501,231 1,461 53.0 142 143 1996 409,807 1,195 37.6 100 94 96 1997 343,601 1,002 27.0 62 1998 302,725 883 22.3 35 47 17 24 29 1999 223,372 651 14.5 0 2000 209,725 611 10.8 North Japan America Europe Other World Total 2001 126,589 369 7.7 2002 96,138 280 4.9 2001 2002 2003 Projection N.B. 1. Based on statistics from the Ministry of Economy, Trade and industry; N.B. 1. Source: Japan Recording-Media Industries Association (JRIA) Total production includes exports 2. Figures for 2001 and 2002 are projected estimates. Only figures for Japan 2. Audiotape volume in units is calculated using a cassette tape with 60 for 2001 and 2002 are actual, recorded figures. minutes of playtime.down.

RIAJ Yearbook 2003 20 レコ協_YB03_E030612修正 03.6.20 4:34 PM ページ21

4 Related Data

Global Sales of Recordings by Country

●Sales of Audio Recordings for 2002

Singles LPs Cassettes CDs Total Sales % Annual GrowthValue of Population Country Purchase per (millions) (millions) (millions) (millions) (millions of US$) Units Local Currency Person (US$) (thousands) U.S.A. 8.4 1.7 32.4 803.3 12,325.7 -10.2% -8.1% 43.10 285,962 Japan 77.1 2.2 4.6 228.9 4,593.3 -10.2% -9.9% 36.09 127,291 U.K. 52.5 2.2 1.9 221.6 2,859.4 -1.0% -2.5% 48.02 59,542 France 40.5 0.5 5.0 130.4 1,989.7 2.5% 3.5% 33.47 59,453 Germany 39.2 1.0 21.8 178.2 1,988.0 -4.0% -10.3% 24.24 82,007 Canada 0.6 - 1.1 57.0 587.9 -6.3% -9.7% 19.11 30,757 Italy 3.6 0.1 4.0 44.7 554.7 8.6% 0.5% 9.65 57,503 Spain 2.2 0.01 2.4 61.7 542.3 -18.5% -15.9% 13.58 39,921 Australia 11.9 0.03 0.6 49.2 499.9 -5.9% -8.9% 25.85 19,338 Mexico 0.6 0.02 2.9 51.1 445.5 -4.4% -18.6% 4.44 100,368 Netherlands 3.6 0.2 0.1 27.9 397.6 -14.1% -13.2% 24.96 15,930 Brazil 0.1 - - 79.5 354.0 1.6% 3.6% 2.05 172,559 Sweden 4.0 0.1 0.3 26.4 281.9 -0.4% -6.7% 31.91 8,833 Russia 0.3 0.1 95.0 18.2 257.2 1.5% 24.0% 1.78 144,664 Norway 1.2 - 0.1 15.1 254.0 12.4% 4.3% 56.60 4,488 Switzerland 3.0 0.2 0.9 21.3 253.2 1.7% -2.5% 35.31 7,170 Austria 2.1 0.1 0.2 14.5 245.2 -9.8% -7.9% 30.37 8,075 Belgium 6.2 0.04 0.04 17.8 225.3 -9.0% -8.2% 21.95 10,264 South Korea 0.1 - 7.1 21.4 216.1 -31.4% -21.2% 4.59 47,069 India - - 162.5 8.6 172.3 -14.5% -22.6% 0.17 1,025,096 Denmark 0.6 0.01 0.03 11.8 167.2 -18.7% -15.8% 31.35 5,333 Taiwan 0.6 - 0.2 16.6 143.9 -7.4% -13.8% 6.42 22,406 Portugal 0.3 - 2.2 12.5 138.3 -1.7% 3.7% 13.78 10,033 Ireland 2.0 0.01 0.2 8.0 122.5 -7.4% -7.8% 31.89 3,841 Turkey - - 23.4 4.5 121.2 -7.3% 8.1% 1.79 67,632 Finland 0.6 0.01 0.1 9.8 111.0 -10.2% -7.5% 21.44 5,178 South Africa 0.9 - 5.9 11.6 110.6 4.9% 12.2% 2.53 43,792 China - - 43.0 18.0 93.6 14.7% 11.6% 0.07 1,276,270 Hong Kong 0.2 0.001 - 10.0 89.7 0.3% -7.1% 13.34 6,725 New Zealand 0.7 0.003 0.2 7.6 87.6 -2.4% -3.8% 23.00 3,808 Poland 0.2 0.003 4.2 9.5 84.5 -44.5% -27.5% 2.19 38,577 Thailand - - 19.3 9.7 83.8 -18.7% -11.8% 1.32 63,584 Greece 1.1 0.01 0.2 7.0 80.3 4.4% 7.0% 7.56 10,623 Columbia 0.01 0.003 0.1 7.7 66.1 -24.5% -27.4% 1.54 42,803 Indonesia - - 32.0 1.8 64.6 -32.8% -18.0% 0.30 214,840 Singapore 0.1 - 0.001 5.2 46.7 9.2% 4.3% 11.37 4,108 Hungary 0.3 0.001 1.8 3.0 45.7 -16.2% -19.1% 4.61 9,917 Chile 0.02 - 1.1 5.9 40.3 22.5% 3.7% 2.62 15,402 Israel - - 0.1 3.5 37.2 -12.2% -10.6% 6.03 6,172 Czech Republic 0.01 - 1.2 3.6 34.9 -26.4% -20.0% 3.40 10,260 Malaysia 0.01 - 3.6 2.2 32.8 -24.2% -20.8% 1.45 22,633 Saudi Arabia - - 7.3 0.4 31.0 -30.2% -39.2% 1.47 21,028 Ukraine 0.1 - 14.0 3.0 31.0 - - 0.63 49,112 U.A.E. - - 3.7 1.1 29.5 -4.0% -5.9% 11.12 2,654 Central America - - 0.1 3.0 28.2 -6.6% 9.1% 0.76 37,112 Philippines 0.03 - 2.8 2.8 27.3 -25.5% -16.1% 0.35 77,131 Argentina 0.1 - 0.6 5.5 27.2 -45.1% -23.4% 0.73 37,488 Egypt - - 11.5 0.1 25.7 -23.6% 4.7% 0.37 69,080 Romania - - 12.4 3.8 24.3 - - 1.09 22,388 Venezuela 0.002 - 0.001 2.1 15.9 -59.4% -49.5% 0.65 24,632 Other 0.218 -0.051 -47.172 -14.7 -104.9 -0.44 240,494 Total 265.3 8.5 487.0 2,253.4 30,980.9 6.49 4,771,346

N.B. 1. Source: International Federation of the Phonographic Industry (IFPI); On a pretax retail price basis 2. The US$ exchange rate is based on the averaged rate for 2002 ($1 = ¥125.4). 3. Cassette singles and CD singles are included in Singles. 4. Population estimated from statistics of each country.

21 RIAJ Yearbook 2003 レコ協_YB03_E030612修正 03.6.20 4:34 PM ページ22

●Sales of Audio Recordings for 2001

Singles LPs Cassettes CDs Total Sales % Annual GrowthValue of Population Country Purchase per (millions) (millions) (millions) (millions) (millions of US$) Units Local Currency Person (US$) (thousands) U.S.A. 21.4 2.3 45.0 881.9 13,411.7 -9.4% -4.5% 47.35 283,230 Japan 93.1 4.2 6.1 250.0 5,257.7 -11.4% -8.0% 41.43 126,919 U.K. 59.5 2.6 4.6 218.6 2,808.7 3.1% 4.9% 47.27 59,415 Germany 51.3 1.1 22.1 182.9 2,107.6 -8.7% -10.1% 25.70 82,017 France 39.1 0.6 6.8 125.2 1,828.3 8.4% 9.7% 30.86 59,238 Canada 0.5 - 1.5 60.7 659.9 -9.6% -9.6% 21.46 30,757 Spain 2.4 0.03 7.0 71.1 613 1.6% 0.9% 15.36 39,910 Mexico 0.2 0.1 6.5 50.0 565.8 -15.5% -16.1% 5.72 98,872 Italy 4.3 0.03 6.4 38.0 524.7 -7.8% -8.6% 9.12 57,530 Australia 13.0 0.03 0.9 52.1 522.5 12.5% 4.8% 27.30 19,138 Netherlands 5.0 0.1 0.2 31.5 435.7 -5.9% -1.4% 27.46 15,864 Brazil 0.1 - - 78.2 423.5 -25.0% -24.7% 2.49 170,406 Sweden 4.4 0.1 0.3 26.3 284.9 -0.8% -0.7% 32.22 8,842 Switzerland 3.1 0.1 0.6 21.2 239.9 -2.6% -2.4% 33.46 7,170 South Korea 0.1 - 16.1 25.4 265.8 -7.7% 1.2% 5.69 46,740 Austria 3.0 0.1 0.3 15.8 253.2 -17.9% -9.8% 31.34 8,080 Belguim 7.1 0.1 0.1 19.4 233.4 -7.8% -9.9% 22.77 10,249 India - - 190.0 10.0 229.3 16.6% 15.0% 0.23 1,008,937 Russia 0.2 0.1 100.2 11.4 223.0 1.3% 17.4% 1.53 145,491 Norway 1.0 - 0.1 13.5 216.2 -7.3% -4.9% 48.38 4,469 Denmark 1.2 0.01 0.1 14.2 188.3 -24.1% -16.9% 35.39 5,320 Taiwan 1.0 - 0.5 17.5 169.9 -31.5% -22.9% 7.63 22,280 Turkey - - 26.2 3.9 153.0 - - 2.29 66,668 Portugal 0.4 0.01 3.4 11.6 126.8 -7.1% -7.7% 12.66 10,016 Ireland 2.2 0.02 0.4 8.4 126.3 -0.2% 7.4% 33.21 3,803 South Africa 0.7 - 6.0 10.7 120.6 -5.8% -0.5% 2.78 43,309 Poland 0.4 0.004 10.3 14.4 115.8 -17.9% -26.9% 3.00 38,605 Finland 0.7 0.02 0.3 10.7 114.1 -1.5% 1.4% 22.06 5,172 Argentina - - 1.7 9.4 108.7 -30.7% -36.5% 2.94 37,032 Hong Kong 0.1 - 0.03 10.0 96.6 -11.4% -10.6% 14.25 6,780 Thailand - - 28.0 7.7 91.8 - - 1.46 62,806 Colombia 0.003 - 0.3 10.1 99.0 - - 2.35 42,105 New Zealand 0.6 0.02 0.4 7.6 82.8 1.1% 2.4% 21.92 3,778 China - - 39.4 13.8 83.9 41.5% 28.6% 0.06 1,295,330 Indonesia - - 48.3 2.0 71.5 -8.2% -8.2% 0.34 212,092 Greece 1.2 0.01 0.4 6.5 71.3 -13.2% -17.7% 6.72 10,610 Saudi Arabia - - 10.4 0.7 51.0 -7.1% -8.7% 2.51 20,346 Hungary 0.2 0.002 2.7 3.3 50.8 -20.0% -9.5% 5.10 9,968 Venezuela - - 0.02 5.1 50.5 -20.1% -14.4% 2.09 24,170 Israel - - 0.2 4.0 46.9 -16.2% -7.0% 7.76 6,040 Singapore 0.1 - 0.003 4.7 44.8 -1.4% 1.0% 11.15 4,018 Chile 0.03 - 1.7 4.0 42.2 -20.1% -24.0% 2.77 15,211 Malaysia 0.02 - 4.8 2.8 41.4 -19.4% -21.3% 1.86 22,218 Czech Republic 0.03 0.1 1.8 4.7 37.6 -1.5% -8.7% 3.66 10,272 Romania - - 12 0.2 13.7 -23.0% -38.1% 0.61 22,438 Central America - - 0.5 2.9 25.9 0.0% -33.4% 0.71 36,257 Philippines 0.01 - 5.7 1.8 32.9 - - 0.43 75,653 Egypt - - 15.0 0.2 27.7 -40.2% -41.3% 0.41 67,884 Zimbabwe - - 5.0 0.2 28.8 - - 2.28 12,627 U.A.E. - - 3.8 1.2 31.3 -17.5% -10.7% 12.01 2,606 Other 0.307 0.014 -43.7 -5.3 -76.9 -0.27 286,640 Total 318.0 11.8 600.5 2,372.2 33,373.8 7.00 4,765,328

N.B. 1. Source: International Federation of the Phonographic Industry (IFPI); On a pretax retail price basis 2. The US$ exchange rate is based on the averaged rate for 2001 ($1=¥121.5). 3. Cassette singles and CD singles are included in Singles. 4. Population estimated from statistics of each country.

RIAJ Yearbook 2003 22 レコ協_YB03_E030612修正 03.6.20 4:34 PM ページ23

4 Related Data

●Sales of Music Video Recordings for 2002

DVDs VHSs Total Sales % Annual Growth Country (thousands) (thousands) (thousands of US$) Units Local Currency Japan 10991.1 2093.3 407,648.8 -2.1% -2.4% U.S.A. 10651.0 3463.8 283,627.6 -19.4% -13.4% France 3071.0 816.0 80,378.6 29.6% 20.7% U.K. 3,563.0 1,486.7 76,639.1 5.0% 9.8% Germany 3,333.3 444.4 65,356.4 60.1% 50.4% Thailand 15,239.0 - 46,408.7 245.2% 127.1% Netherlands 2,045.0 228.8 42,738.0 248.4% 287.1% Brazil 2,822.2 400.4 34,916.4 81.1% 72.4% Canada 1,619.0 1,199.0 33,340.6 20.9% 24.8% Australia 2,374.7 207.4 32,266.5 156.9% 94.5% Taiwan 1,321.0 994.6 17,747.8 85.9% 46.8% Mexico - 859.5 16,592.2 278.0% 207.7% China 8,175.0 - 15,496.6 46.5% -7.0% Italy 832.2 - 10,170.8 93.0% 47.2% Hong Kong 1,213.6 - 9,505.5 -21.5% -23.0% Portugal 376.8 18.3 9,168.3 159.7% 159.8% Spain 487.8 31.1 8,693.2 2.0% 12.8% Belguim 346.4 28.5 8,167.8 44.9% 38.9% Austria 195.3 23.5 6,078.6 39.8% 45.6% Norway 181.6 9.6 5,562.9 138.9% 146.3% South Korea 356.7 - 5,471.8 - - Ireland 28.7 265.5 5,399.2 22.5% 26.4% Sweden 237.9 57.6 5,345.3 120.6% 113.6% Chile 231.4 37.8 4,441.9 >1000% >1000% South Africa 253.8 - 4,399.8 34.1% 66.4% New Zealand 217.9 6.3 3,663.6 85.2% 69.4% Finland 81.5 53.5 3,534.2 27.1% 45.5% Poland 173.7 36.8 3,465.9 -30.8% 2.5% Singapore 254.7 - 2,695.7 -16.0% -11.2% Indonesia 461.0 - 1,815.5 -37.8% -39.2% Malaysia 299.8 - 1,704.3 6.8% 1.3% Denmark 67.4 - 1,603.8 50.0% 120.0% Czech Republic 45.3 36.8 1,594.7 39.3% 55.6% Hungary 48.8 27.0 1,374.5 73.4% 30.2% Israel 35.0 1.2 870.4 - - Russia 25.0 97.0 835.9 1.7% 12.0% Philippines 110.8 0.03 709.0 97.9% 66.6% Argentina 62.1 4.2 706.5 142.3% 883.7% Colombia 15.8 21.1 560.5 -48.5% 13.9% Ukraine 3.0 105.0 508.6 - - Pakistan 300.0 - 315.6 - - Venezuela 20.9 - 288.2 75.2% 155.6% Slovakia 15.8 - 244.9 0.0% 5.0% Latvia 6.3 - 151.7 - - Lithuania 4.0 2.0 116.9 275.0% 205.0% Central America 5.0 - 106.3 - - Romania 3.0 8.0 64.8 - - Bulgaria - 3.0 29.2 -7.4% -11.5% Zimbabwe 0.3 - 18.2 - - Other -10,133.5 0.0 -15,496.5 Total 62,793.1 13,067.7 1,247,044.8

N.B. 1. Source: International Federation of the Phonographic Industry (IFPI); On a pretax retail price basis 2. The US$ exchange rate is based on the averaged rate for 2002 ($1=¥125.4) 3. Spain, Norway, Czech Republic — format splits are estimates. 4. Taiwan, China, Singapore, Malaysia — DVD figures include VCDs. 5. Thailand, Indonesia — figures are VCDs. 6. Italy, Denmark, Pakistan, Venezuela, Slovakia — DVD figures include VHSs. 7. South Korea, Israel, Ukraine, Pakistan, Latvia, Central America, Romania, Zimbabwe — figures not comparable to 2001.

23 RIAJ Yearbook 2003 レコ協_YB03_E030612修正 03.6.20 4:34 PM ページ24

●Sales of Music Video Recordings for 2001

DVDs VHSs Total Sales Country (thousands) (thousands) (thousands of US$) Japan 8,627.8 4,733.3 430,960.2 U.S.A. 7,899.0 9,615.0 327,378.0 U.K. 1,825.7 2,985.5 67,524.3 France2,190.0 810.0 63,188.6 Germany 1,460.7 898.9 41,231.9 Canada 933.7 1,396.8 27,044.5 Brazil1,653.0 126.2 25,076.0 Thailand 4,410.0 - 19,760.3 China 5,510.0 71.0 16,663.9 Australia 802.1 203.2 15,818.9 Hong Kong 1,543.6 2.7 12,348.0 Taiwan 1,245.7 - 12,303.2 Netherlands 544.3 108.3 10,474.4 Spain 432.6 76.3 7,310.1 Italy 431.1 - 6,553.6 Belguim 185.1 73.7 5,578.8 Mexico - 227.4 5,573.9 Ireland - 240.2 4,052.9 Austria 112.9 43.5 3,961.8 Poland 140.0 164.3 3,366.6 Portugal 138.6 13.6 3,347.4 South Africa 112.9 76.3 3,237.5 Singapore 303.3 - 3,037.2 Indonesia 741.5 - 2,710.0 Sweden 84.0 50.0 2,359.1 Finland - 106.2 2,304.1 Norway 76.0 4.0 2,005.6 New Zealand 110.5 10.5 1,964.6 Malaysia 280.5 0.3 1,682.2 Hungary 27.7 16.0 950.6 Czech Republic 23.6 35.4 882.1 Russia 20.0 100.0 802.2 Denmark 3.1 41.8 691.6 Colombia 1.4 70.2 535.8 Greece 29.8 - 489.8 Philippines 55.4 0.6 430.8 Chile 1.6 21.1 401.3 Argentina 27.4 - 220.0 Slovakia 15.8 - 218.6 Venezuela 11.9 - 180.9 Estonia3.4 4.5 135.7 Paraguay 3.5 1.9 116.1 Peru 2.6 - 57.9 Lithuania 1.2 0.4 35.3 Bulgaria - 3.2 31.4 Other -7,284.0 -71.2 -16,663.9 Total 34,739.7 22,261.1 1,118,333.8

N.B. 1. Sources: International Federation of the Phonographic Industry (IFPI); On a pretax retail price basis 2. The US$ exchange rate is based on the averaged rate for 2001 ($1=¥121.5) 3. Spain, Norway, Czech Republic, Colombia, Philippines — format splits are estimates. 4. China, Taiwan, Singapore, Malaysia — DVD figures include VCDs. 5. Thailand, Indonesia — figures are VCDs. 6. Taiwan, Italy, Greece, Argentina, Slovakia, Venezuela, Peru — DVD figures include VHSs.

RIAJ Yearbook 2003 24 レコ協_YB03_E030612修正 03.6.20 4:34 PM ページ25

4 Related Data

Global Shipping and Sales of Audio Recordings by Leading Country

(1) U.S.A. (Source: Recording Industry Association of America) Millions of units ● Volume of CD CD Cassette Analog Album Single Cassettes LPs Total Shipments Albums Singles Singles Disk Singles Total Total 1998 847.0 56.0 158.5 26.4 3.4 5.4 1,096.7 1,008.9 87.8 1999 938.9 55.9 123.6 14.2 2.9 5.3 1,140.8 1,065.4 75.4 2000 942.5 34.2 76.0 1.3 2.2 4.8 1,061.0 1,020.7 40.3 2001 881.9 17.3 45.0 -1.5 2.3 5.5 950.5 929.2 21.3 2002 803.3 4.5 31.0 -0.5 1.7 4.4 844.5 836.1 8.4 2002/2001 91% 26% 69% - 74% 80% 89% 90% 39%

Millions of US$ ●Value of CD CD Cassette Analog Album Single Cassettes LPs Total Shipments Albums Singles Singles Disk Singles Total Total 1998 11,416 213 1,420 94 34 26 13,203 12,870 333 1999 12,816 222 1,062 48 32 28 14,208 13,910 298 2000 13,215 143 626 5 28 26 14,043 13,869 174 2001 12,909 79 363 -5 27 31 13,404 13,299 105 2002 12,044 20 210 -2 21 25 12,318 12,275 43 2002/2001 93% 25% 58% - 78% 81% 92% 92% 41%

(2) U.K. (Source: The British Phonographic Industry) Millions of units ●Volume of CD CD Cassette Analog Album Single Cassettes LPs Total Shipments Albums Singles Singles Disk Singles Total Total 1998 175.7 53.5 32.2 18.9 2.2 7.0 289.5 210.1 79.4 1999 176.9 52.8 18.4 19.7 2.3 7.7 277.8 197.6 80.2 2000 201.6 43.5 11.4 13.6 3.2 9.0 282.3 216.2 66.1 2001 218.6 40.7 4.6 9.9 2.6 8.9 285.3 225.8 59.5 2002 221.6 38.6 1.9 5.7 2.2 8.3 278.3 225.7 52.6 2002/2001 101% 95% 41% 58% 85% 93% 98% 100% 88%

Millions of pound ●Value of CD CD Cassette Analog Album Single Cassettes LPs Total Shipments Albums Singles Singles Disk Singles Total Total 1998 878 93 109 17 8 13 1,119 995 124 1999 915 103 71 19 7 16 1,130 992 138 2000 998 89 41 14 9 19 1,169 1,047 121 2001 1,099 81 15 10 8 18 1,232 1,122 109 2002 1,078 77 5 6 6 15 1,186 1,089 97 2002/2001 98% 95% 33% 60% 75% 83% 96% 97% 89%

(3) Germany (Source: Deutsche Landesgruppe der IFPI) Millions of units ● Volume of CD CD Analog Album Single Cassettes LPs Total Shipments Albums Singles Disk Singles Total Total 1998 196.5 53.0 25.3 0.6 1.0 276.4 222.4 54.0 1999 198.0 52.5 20.3 0.6 1.2 272.6 218.9 53.7 2000 195.1 49.8 19.4 0.8 1.3 266.4 215.3 51.1 2001 173.4 47.5 21.0 1.0 1.2 244.1 195.4 48.7 2002 165.7 35.6 20.3 1.0 0.9 223.5 187.0 36.5 2002/2001 96% 75% 97% 100% 75% 92% 96% 75%

Millions of DEM ¥ EUR ●Value of CD CD Analog Album Single Cassettes LPs Total Shipments Albums Singles Disk Singles Total Total 1998 4,280 554 201 - - 5,035 4,481 554 1999 4,157 587 147 - - 4,890 4,303 587 2000 4,063 574 143 - - 4,780 4,206 574 2001 1,877 268 89 - - 2,235 1,967 268 2002 1,749 244 81 - - 2,034 1,831 244 2002/2001 93% 91% 91% - - 91% 93% 91%

N.B. 1. Units of value up to the year 2000 use the Deutsche mark, with all values from 2001 using the euro. 2. Value of analog disc singles is included in CD singles. 25 RIAJ Yearbook 2003 レコ協_YB03_E030612修正 03.6.20 4:34 PM ページ26

(4) France (Source: Syndicat National de l’Edition Phonographique) Millions of units ●Volume of CD CD Analog Album Single Cassettes LPs Total Shipments Albums Singles Disk Singles Total Total 1998 103.4 39.6 13.8 0.3 0.1 157.2 117.5 39.7 1999 102.0 35.8 11.4 0.4 0.7 150.3 113.9 36.5 2000 104.0 36.0 8.4 0.5 0.8 149.6 112.8 36.8 2001 114.5 37.3 7.5 0.6 0.6 160.5 122.5 37.9 2002 118.9 38.9 4.6 0.5 0.5 163.3 124.0 39.3 2002/2001 104% 104% 62% 76% 74% 102% 101% 104%

Millions of FRF ●Value of CD CD Analog Album Single Cassettes LPs Total Shipments Albums Singles Disk Singles Total Total 1998 5,873 857 561 8 3 7,303 6,443 860 1999 5,812 795 458 11 15 7,091 6,280 810 2000 5,908 800 331 15 16 7,071 6,255 817 2001 6,583 830 254 19 14 7,701 6,857 844 2002 1,049 132 28 2 2 1,212 1,079 134 2002/2001 104% 104% 72% 77% 81% 103% 103% 104%

N.B. Units of value up to the year 2000 use the Franc, with all values from 2001 using the euro.

Global Share in Sales of Audio Recordings (millions of US$)

1998 1999

All other All other Australia 606.7 (1.6%) 6,858.6 Australia 656.3 (1.7%) 6,632.7 U.S.A. Italy 652.9 (1.7%) (18.0%) U.S.A. Brazil 668.4 (1.7%) (17.1%) 13,201.0 14,251.4 Spain 680.7 (1.8%) Spain 710.5 (1.8%) (36.8%) (34.6%) Total Canada 971.7 (2.5%) Total Italy 713.2 (1.8%) 38,201.7 38,679.7 Brazil 1,171.7 (3.1%) Canada 885.8 (2.3%) France 2,147.2 (5.6%) France 1,983.4 (5.1%) Japan U.K. 2,855.6 (7.5%) Germany 2,832.5 (7.3%) Japan 6,043.5 6,436.6 Germany 3,012.1 (7.9%) (15.8%) U.K. 2,908.9 (7.5%) (16.6%)

2000

All other Australia 561.3 (1.5%) 6,060.9 (16.4%) Spain 625.5 (1.7%) U.S.A. 14,042.0 Mexico 665.9 (1.8%) Total (38.0%) Brazil 724.7 (2.0%) 36,936.5 Canada 761.4 (2.1%) France 1,716.0 (4.6%) Japan Germany 2,414.8 (6.5%) 6,535.3 U.K. 2,828.7 (7.7%) (17.7%)

2001 2002 All other All other Australia 522.5 (1.6%) 5,073.9 Mexico 445.5 (1.4%) 4,594.5 (15.2%) Italy 524.7 (1.6%) U.S.A. Australia 499.9 (1.6%) (14.8%) U.S.A. 13,411.7 12,325.7 Mexico 565.8 (1.7%) Spain 542.3 (1.8%) (40.2%) (39.8%) Spain 613.0 (1.8%) Total Italy 554.7 (1.8%) Total Canada 659.9 (2.0%) 33,373.8 Canada 587.9 (1.9%) 30,980.9 France 1,828.3 (5.5%) Germany 1,988.0 (6.4%) Germany 2,107.6 (6.3%) Japan France 1,989.7 (6.4%) Japan U.K. 2,808.7 (8.4%) 5,257.7 U.K. 2,859.4 (9.2%) 4,593.3 (15.8%) (14.8%)

N.B. 1. Source: statistics of the IFPI 2. US$ exchange rates vary from year to year in accordance with IFPI’s calculation. 3. Figures in parentheses show share % of the format. RIAJ Yearbook 2003 26 レコ協_YB03_E030612修正 03.6.20 4:34 PM ページ27

4 Related Data

Import/Export of Audio Disks ●Import/Export of CDs — Unit Basis (Customs clearance figures) ●Import/Export of CDs — Value Basis (Customs clearance figures)

Thousands of units Millions of yen 29,583 62,491 60,000 59,340 25,110 57,327 25,000 24,197 23,990 23,071 50,000 49,113 48,172 20,000 40,000 15,000 30,000 10,000 20,000 5,000 10,000 3,864 3,997 3,350 2,916 2,896 6,759 5,155 2,838 4,580 3,811 0 0 1998 1999 2000 2001 2002 1998 1999 2000 2001 2002 Export Import Export Import

●Breakdown of Import/Export of Audio Disks by Country and Format Thousands of units, Millions of yen Export Import Country Analog Disks CDs Total Analog Disks CDs Total Unit 11 (721) 2,001 (264) 2,012 (265) 4,569 (83) 11,085 (116) 15,654 (104) U.S.A. Value 7 (336) 1,225 (112) 1,231 (112) 2,765 (91) 8,357 (101) 11,122 (98) Unit 5 (142) 69 (93) 74 (95) 1,985 (87) 5,417 (111) 7,402 (103) U.K. Value 7 (177) 78 (75) 84 (78) 1,321 (93) 4,056 (108) 5,377 (104) Unit 7 (134) 384 (424) 390 (409) 417 (96) 7,846 (103) 8,263 (103) Germany Value 3 (127) 138 (199) 141 (197) 241 (101) 4,061 (90) 4,302 (91) Unit 1 - 39 (22) 40 (22) 48 (77) 1,704 (90) 1,752 (90) Netherlands Value - - 66 (53) 66 (53) 33 (91) 640 (62) 673 (63) Unit 2 (73) 61 (62) 64 (63) 139 (90) 883 (118) 1,021 (113) France Value 1 (74) 102 (78) 103 (78) 89 (90) 644 (126) 733 (120) Unit - - 11 (61) 11 (61) 126 (83) 564 (93) 690 (91) Italy Value - - 20 (95) 20 (95) 77 (90) 294 (114) 371 (108) Unit - - 8 (93) 8 (93) 5 (693) 640 (153) 645 (154) Austria Value - - 11 (85) 11 (85) 3 (664) 382 (150) 385 (151) Unit 9 - 68 (137) 76 (154) 2 (158) 6,277 (140) 6,279 (140) South Korea Value 1 - 142 (145) 143 (145) - - 497 (166) 497 (166) Unit 11 (264) 311 (92) 322 (94) - - 7,746 (69) 7,746 (69) Taiwan Value 5 (203) 230 (77) 235 (78) - - 1,062 (70) 1,062 (70) Unit 1 - 613 (22) 614 (22) 3 - 8,739 (154) 8,742 (154) Hong Kong Value - - 583 (110) 583 (110) - - 1,096 (115) 1,097 (115) Unit - - 89 (96) 89 (96) 1 - 6,338 (105) 6,338 (105) Singapore Value - - 126 (67) 126 (67) - - 917 (87) 917 (88) Unit - - 2 (25) 2 (26) - - 944 (84) 944 (84) China Value 7 - 11 (61) 18 (99) - - 240 (292) 240 (292) Unit - - 20 (129) 20 (101) - - 114 (50) 114 (50) Malaysia Value - - 29 (61) 29 (60) - - 39 (24) 39 (24) Unit - - 70 (1983) 70 (1983) - - 193 (85) 193 (85) Thailand Value - - 27 (143) 27 (143) - - 173 (84) 173 (84) Unit ------196 (99) 776 (53) 972 (58) Czech Republic Value - - 1 - 1 - 47 (117) 71 (98) 118 (105) Unit 1 - 15 (126) 16 (133) 15 (60) 638 (63) 653 (63) Canada Value 1 - 24 (128) 25 (133) 6 (75) 654 (60) 660 (60) Unit - - 2 (201) 2 (201) 2 (84) 523 (87) 524 (87) Brazil Value - - 5 (283) 5 (283) 1 (105) 413 (85) 414 (85) Unit - - 7 (31) 7 (31) 3 (230) 176 (66) 179 (67) Australia Value - - 7 (29) 7 (29) 1 (65) 104 (59) 105 (59) Unit 1 - 40 (61) 40 (62) 220 (97) 1,888 (158) 2,108 (149) All other Value - - 72 (62) 73 (63) 69 (97) 498 (115) 566 (112) Unit 48 (221) 3,811 (83) 3,859 (84) 7,729 (86) 62,491 (105) 70,220 (103) Total Value 32 (253) 2,896 (99) 2,928 (100) 4,654 (92) 24,197 (96) 28,851 (96)

N.B. 1. Source: Japanese Trade Statistics by Customs & Tariff Bureau,Ministry of Finance. Figures in percentage: percentage against previous year 2. Export/import figures include custom pressings commissioned to/by RIAJ companies from/to foreign entities. 3. 23% of CD imports is estimated to be by record companies. 4. Figures are rounded, hence the possible difference between total and breakdown. 27 RIAJ Yearbook 2003 レコ協_YB03_E030612修正 03.6.20 4:34 PM ページ28 レコ協_YB03_E030612修正 03.6.20 4:34 PM ページc4

RIAJ Member Companies (In chronological order of the date of joining RIAJ or Company foundation)

[Full Member] Columbia Music Entertainment Co., Ltd. 4-14-14 Akasaka, Minato-ku, Tokyo 107-8011 03-3584-8111 Victor Entertainment, Inc. Palacion Tower, 3-6-7 Kita-Aoyama, Minato-ku, Tokyo 107-0061 03-5467-5401 KING RECORD CO., LTD. 1-2-3 Otowa, Bunkyo-ku, Tokyo 112-0013 03-3945-2131 TEICHIKU ENTERTAINMENT, INC. 6F, Kyocera Harajuku Bldg., 6-27-8 Jingu-mae, Shibuya-ku, Tokyo 150-8516 03-5778-1721 UNIVERSAL MUSIC K.K 8-5-30 Akasaka, Minato-ku, Tokyo 107-8583 03-6406-3001 TOSHIBA-EMI LIMITED 2-2-17 Akasaka, Minato-ku, Tokyo 107-8510 03-5512-1700 NIPPON CROWN Co., Ltd. Fuji 28 Bldg., 2-7-26 Kita-Aoyama, Minato-ku, Tokyo 107-8405 03-5772-4841 TOKUMA JAPAN COMMUNICATIONS CO., LTD. Plaza 246 Aoyama Bldg., 3-1-1 Minami-Aoyama, Minato-ku, Tokyo 107-8584 03-3746-2801 Sony Music Entertainment (Japan), Inc. 4-5 Rokuban-cho, Chiyoda-ku, Tokyo 102-8353 03-3515-5050 PONY CANYON Inc. 2-5-10 Toranomon, Minato-ku, Tokyo, 105-8487 03-5521-8000 Warner Entertainment Japan Inc. 3-1-2 Kita-Aoyama, Minato-ku, Tokyo 107-8639 03-5412-3111 Warner Music Japan VAP Inc. 4F Nippon Television Yonban-cho Annex, 5-6 Yonban-cho, Chiyoda-ku, Tokyo 102-0081 03-3234-5711 BMG FUNHOUSE, INC. 1-3-9 Shibuya, Shibuya-ku, Tokyo 150-8350 03-3797-9020 PIONEER LDC INC. 1-20-6 Ebisu-Minami, Shibuya-ku, Tokyo 150-8506 03-5721-1351 B-Gram RECORDS, INC. Morimoto-Roppongi Bldg., 5-2-2 Roppongi, Minato-ku, Tokyo 106-0032 03-3479-2371 AVEX INC. 3-1-30 Minami-Aoyama, Minato-ku, Tokyo 107-8577 03-5413-8550 PRYAID RECORDS INC. 2-14-6 Ebisu-Minami, Shibuya-ku, Tokyo 150-8955 03-3710-0510 Tri-M, Inc. 2F, Telwel Akasaka Bldg., 6-6-20 Akasaka, Minato-ku, Tokyo 107-0052 03-5562-2810 FOR LIFE MUSIC ENTERTAINMENT, INC. 4F, To-ken International Bldg., 2-12-19 Shibuya, Shibuya-ku, Tokyo 150-0002 03-5466-4116

[Associate Member] Johnny’s Entertainment Inc. 7-10-20 Akasaka, Minato-ku, Tokyo 107-0052 03-5570-0808 Roadrunner Japan, Inc. 5F, Ozawa Bldg., 1-6-6 Jinnan, Shibuya-ku, Tokyo 150-0041 03-3463-6907 ZOMBA RECORDS JAPAN K.K. 1-3-9 Shibuya, Shibuya-ku, Tokyo 150-8350 03-3797-9020

[Supporting Member] KING INTERNATIONAL INC. 1-2-3 Otowa, Bunkyo-ku, Tokyo 112-0013 03-3945-2333 Bellwood Records 1-2-3 Otowa, Bunkyo-ku, Tokyo 112-0013 03-3945-2303

■ Total Companies: 24 as of June, 2003

Recording Industry Association of Japan 2F Nittetsu Kobiki Bldg., 7-16-3 Ginza, Chuo-ku,Tokyo104-0061 Phone: 03-3541-4411 Fax: 03-3541-4460 http://www.riaj.or.jp

Compiled and edited by Recording Industry Association of Japan © 2003

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